Entrepreneurs Take the Risks, Not VCs

May 3, 2010

A TechCrunch post by Vivek Wadhwa includes a Q&A with three entrepreneurs who bootstrapped their way to success.

Wadhwa reminds us, “The reality is that less than 5% of venture money goes to seed-stage startups; VCs typically invest when a company has a working product, a tested business model, and a strong management team.” To get to this point, entrepreneurs must make sacrifices, hard choices and call on the support of family and friends (and credit cards). Wadhwa argues that it’s the entrepreneurs who are the real risk takers, not the VCs. (Read more)

The Art of Bootstrapping by Guy Kawasaki

December 8, 2008

I share Guy’s outlook — in a down economy it’s those who think outside the “getting funded” box who will still be around when the economy picks up.

The term bootstrapping comes from the German legend of Baron von Munchhausen pulling himself out of the sea by pulling on his own bootstraps. That’s essentially what you’ll have to do, too.

Read the top 10 art of bootstrapping essentials here.